Former Finance Minister Tonio Fenech has rejected claims by Enemalta's former CEO, David Spiteri Gingell, that he had failed to understand the grave situation the corporation was in.

Mr Spiteri Gingell said before the Public Accounts Committee on Monday that he was given a remit by his minister, Austin Gatt, to bring about change at Enemalta but this was constantly hampered by the Finance Ministry’s withholding of funds. He resigned in frustration.

Reacting to Mr Spiteri Gingell's comments, Mr Fenech said his proposals would have cost some €5.5 million and the Finance Ministry viewed that as “exaggerated”.

Mr Fenech said it would have been irresponsible for him to allow such expenditure when Mr Spiteri Gingell in 11 months did not accompany his request with a study showing what savings the corporation would have made as a result of this substantial investment.

He said that in a conversation with Dr Gatt at the time he explained that the Finance Ministry could not acquiesce to the demands but instead proposed a structure that was half the size. Dr Gatt had accepted Mr Spiteri Gingell's resignation

The reduced structure was eventually implemented by Karl Camilleri who was later appointed CEO. The current CEO Louis Giordimaina  further reduced the size of the structure.

Mr Fenech said Mr Spiteri Gingell’s resignation may have been prompted by other considerations. An Enemalta board member had told me that Spiteri Gingell was angered by a ministerial decision that overruled him in discussions with the General Workers’ Union on a collective agreement.